Under 2 years of sales required full vat at a rate of 5 per cent; post-new deal tax was slightly lower and the overall change was minor
The market's long-standing concern with the issue of “breeding up” individual housing was finally “depositioned”. According to the regulations of the ministry of finance and the national tax administration, which were first disclosed on 24 may, the increase in the number of battalions was to be fully introduced, and from 1 may individuals would pay vat at a rate of 5 per cent for foreign sales of housing for less than two years; and individuals would be exempt from vat for foreign sales of general housing for more than two years (including two years). In contrast to old and new policies, njp journalists found that the actual tax burden had not changed significantly。
Under the programmes of the two ministries, individuals will pay vat in full at the rate of 5 per cent for the purchase of housing sold externally for less than two years; individuals will be exempt from vat for the purchase of housing sold externally for more than two years (including two years). This policy applies only to areas outside beijing, shanghai, guangzhou and shenzhen。
For the northward depth, the two parts are specified. The vat is paid in full at the rate of 5 per cent for persons who purchase housing for less than two years; the vat for individuals who purchase non-ordinary housing for more than two years (including two years), at the rate of 5 per cent for the difference between the sales income and the purchase price; and the vat for individuals who purchase for more than two years (including two years) general housing for external sale。
There are a number of criteria for the identification of general and non-general housing, the difference being mainly in the size of the building, the volume rate and the sale price. Newsman, lee ray
Northward and deep
Individuals who purchase housing for less than two years will pay vat in full at the rate of 5 per cent
(a) if an individual buys a non-ordinary house for more than two years (including two years), he/she pays vat at a rate of 5 per cent for the difference between the sales income and the purchase price
Individuals will be exempted from vat for purchases of ordinary housing for more than two years (including two years)。
North upper and deep
Individuals who purchase housing for less than two years will pay vat in full at the rate of 5 per cent
Individuals are exempt from vat for purchases of housing for foreign sales for more than two years (including two years)。
Post-implementation tax changes for second-hand accommodation camps
(as an example of a general housing house under two years of age, $2 million at a total cost of $3 million)
5% turnover tax prior to 1 may
3 million by 5 per cent = 150,000
5% vat after 1 may
3 million ÷ (1+5%)
5% x = 143,000
Current criteria for recognition of ordinary dwellings in beijing
Volume rate: 1. 0 and above
Single building space: 140 m2 including
Trade unit or basket price:
A unit price of $39,600 per square metre and a total cost of $4. 86 million in five rings
The five to six rings are 31,680 yuan/m2 per unit and 3. 74 million yuan
A unit price of $23760/m2 and a total price of $2. 81 million (two of the total unit price criteria are sufficient)。
How come taxes are not 11% of market speculation
Liu xin, vice-president of the tax school of the central university of finance and economics, said to the news reporter, “we have calculated that the tax would be reduced even if the house price doubled, if the tax was sold within two years, and the tax was not taxable for more than two years; and if the value added tax was levied at the 11 per cent general vat rate on the basis of an entry credit. Reductions in tax revenues are detrimental to national revenues. This may also be a factor in policy considerations.” liu xin said。
With respect to the value added tax rules used in individual housing transactions, which largely perpetuates previous rates, liu indicated that the change in turnover tax to value added tax (vat) is mainly intended to reduce the production costs of the enterprise, that personal housing does not become a cost in the production process of the enterprise, and that changing the tax burden is of little significance; and that the use of vat-specific invoices for the sale of personal housing would make the management of invoices more difficult。
Liu stated that, theoretically, both the turnover tax and the value-added tax should be paid by the seller or the seller of the house, although it was the market habit that had developed over the years that these taxes were ultimately borne by the buyer。
The new policy of “breeding up” perpetuates the tax differentials between cities in the north and those in other cities. A 5 per cent value added tax (vat) is paid at the price differential for non-ordinary housing in the north, even if it is sold abroad for more than two years. In response, liu indicated that, given the current situation in the housing market as a whole, the state's real estate policy differed between first-line cities and second- and third-line cities, and that it was more stringent for the housing market in the far north. (lie)
What's the impact on the used room market
Recently, the “retrofitting” of second-hand homes or the introduction of an increased burden of house purchases as part of the work of intermediaries has left many buyers in a state of panic。
According to the calculations of intermediaries, after the implementation of the new deal, a house for less than two years, with a netting price of $3 million, is subject to a turnover tax of 150,000. For such sources, which were closed after 1 may, vat was required in the amount of $143,000, or $7,000 less。
Assuming a non-ordinary dwelling with a netting price of $3 million and an original purchase price of $2 million, a vat of $48,000 would be required, which is $2,000 less than the turnover tax period。
The director-general of research at the centre of the institute for evictions has made a drastic leap in indicating that housing, such as non-general housing, is one of the most value-added properties, and this time the vat is collected in a way that allows for the collection of taxes and income regulation by calculating the trade-off. In the case of ordinary housing, two years after holding, the corresponding value added can be attributed to the landlord, which is in fact a positive release of the demand for improved housing。
I love the analysis of the vice-president of my group, hu kyung-chul, that, from the value added tax rates published this time, the increase can be seen essentially as a transfer from the existing turnover tax, which has been placed in the value added tax and eliminated. In terms of tax rates, the number of years and the scope of collection, there has been little change in comparison with the previous turnover tax, so that the impact on the second-hand housing market has been minimal。
According to hu, the rules for the collection of vat were introduced at this point, with the main aim of stabilizing market expectations. Before the vat rules were issued, there was much speculation on the part of market parties, and there were indeed institutions that used them to disrupt markets and create market panic. The rules are now published, clarifying that the vat on second-hand house transactions and the original turnover tax have not changed much in terms of tax rates, age and scope of collection, which can be said to have given the market parties an important role in stabilizing market expectations. Fong wangyang
Extension
After full retrofit, tax cuts are expected to exceed $500 billion a year
As of 1 may this year, a pilot project has been launched to expand the number of businesses throughout the country. All tax taxpayers, such as construction, real estate, finance and services, have been included in the pilot project, moving from a turnover tax to a value added tax。
As a result of the camp upgrade, 11 per cent of the vat rate was applied in the construction and real estate sectors and 6 per cent in the finance and subsistence services sectors。
“one of the most pressing tasks of our tax administration now is the smooth start-up of the camps.” according to a beijing national taxer. The task of retrofitting the battalion was referred to by the minister of finance at his second meeting as “military order”. Liu xin indicated that the easy to change during the camp increase had been completed and that the remaining difficulties were more difficult。
In two meetings, the director-general of the national tax administration, wang jun, stated that, compared with the past, the reform of the battalion was more numerous, with nearly 10 million taxpayers; time was short, with less than two months of actual preparation; moreover, for the first time, it involved the payment of vat by natural persons, such as personal second-hand house transactions; many additional taxpayers had little access to vat in the past, and the tax administration had a difficult task of preparing。
Despite the difficult reforms, the positive impact of the restructuring was significant, with the full coverage of goods and services by the value added tax (vat), the virtual elimination of double taxation, the opening of the vat credit chain and the reduction of the business burden. According to prime minister li keqiang, a preliminary estimate from the national level indicates a reduction of more than $500 billion in tax revenues for businesses this year. Liu said that the reduced tax of $500 billion was largely based on turnover tax to value added tax. The people's daily newspaper also wrote that the annual tax cuts were expected to exceed $500 billion after the full expansion of the camp。
“this year, an unprecedented fiscal deficit has been introduced to face pressure to reduce fiscal revenues, while being alert to the possible negative consequences of a massive expansion of the fiscal deficit.” liu xi said。
According to the national tax administration, by the end of 2015, the total number of family members in the country's new battalion was 5. 92 million, of whom 1. 13 million were general taxpayers and 4. 79 million small-scale taxpayers; tax deductions were cumulatively realized in the amount of rmb 641. 2 billion, of which rmb 3,133. 3 million were converted from the tax system and rmb 327. 9 billion from the former vat taxpayers were added to the tax deduction。
In evaluating the effects of the pre-retrofit, the relevant head of the national tax administration stated that the pilot of the retrofit had essentially eliminated the problem of uniform and duplicated tax systems for goods and services and had effectively reduced the tax burden on enterprises. The larger tax cuts achieved by both the pilot and the former vat taxpayers, as seen in the previous pilot cases, are sufficient proof that the overall tax reduction requirements are reflected in the institutional framework for the conversion. (lie)
It's important
October 2011
The department of state decided to launch a pilot camp upgrading exercise to gradually shift the business tax from a sales tax to a value added tax。
1 january 2012
A pilot project on upgrading transport and some modern services was initiated in shanghai。
1 september 2012 to 1 december 2012
The transport sector and part of the modern services upgrading pilot were expanded from shanghai to eight provinces (the municipality directly under the government)。
1 august 2013
The transport sector and some modern services sector upgrade pilot projects are being carried out nationwide, while radio and video services are being included in the pilot。
1 january 2014
The railway and postal industries are piloting camp upgrading nationwide。
1 june 2014
The telecommunications industry has piloted camp upgrades nationwide. As a result, the camp upgrade pilot has covered the “3+7” industries。
1 may 2016
It will be boosted throughout the country. (lie)
